Corridor Resources - Adoption of Shareholder Rights Plan
Halifax, Nova Scotia, January 13, 1999: Corridor Resources Inc. (CDH - ASE) announced today that its Board of Directors has adopted a Shareholder Rights Plan designed to encourage the fair treatment of shareholders if there were to be an unsolicited bid for the Company's common shares. The Plan is effective immediately and is subject to shareholder approval.
The Plan allows a potential bidder to make a "permitted bid" directly to all shareholders without prior Board approval where such bid remains open for a minimum of 60 days. If, at the end of this 60 day period, more than 50% of the Company's common shares have been tendered by independent shareholders, a further 10 business day extension must be granted to allow any shareholders who have not yet tendered, the opportunity to tender their shares. Should any party acquire 20% or more of the Company's outstanding common shares other than by making a "permitted bid" or without Board approval, the Plan will be triggered permitting holders of common shares the opportunity to acquire additional shares at a significant discount and resulting in substantial dilution to the acquiring person.
The Plan was not implemented in response to any proposals, inquiries or expressions of interest received from any third party and the Company is not aware of any third party which is currently considering or preparing any proposal to acquire control of Corridor Resources Inc.
Corridor is a junior natural resource corporation focussing on oil and gas exploration in eastern Canada. The head office of Corridor is located in Halifax, Nova Scotia, and its common shares trade on the Alberta Stock Exchange under the symbol CDH.
This press release contains certain forward looking statements relating to, but not limited to, Corridor's operations, anticipated financial performance, business prospects and strategies, including expectations relating to production levels; capital expenditure programs; the quantity of natural gas reserves; projections of market prices; projections of costs; supply and demand for natural gas; expectations regarding the ability to raise capital and to continually add to reserves through exploration and development; and treatment under governmental regulatory regimes. These statements are based on current expectations that involve numerous assumptions regarding factors and risks that could cause actual results to vary materially, including, without limitation to, the following factors: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, dependence on key personnel, dependence on Potash Corporation of Saskatchewan, Inc., availability of drilling equipment and access, risks may not be insurable, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, Kyoto Protocol, issuance of debt, title to properties and hedging. There is no representation by Corridor that actual results achieved will be the same in whole or in part as those set out in the forward looking information. Furthermore, the forward looking statements contained in this press release are made as of the date hereof, and Corridor undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.
